UPDATE: Well that didn't take long. Spectra Energy Partners has agreed to purchase PSEG's minority share of the PennEast pipeline, according to an announcement today by the pipeline's board of managers.

Wall-based New Jersey Resources says the proposed PennEast pipeline will continue despite one of its partners looking to sell their share of the pipeline.

Public Service Enterprise Group, or PSEG, announced Wednesday that it is putting its 10 percent stake in the pipeline up for sale.

This decision follows several delays and disputes with state and federal regulators, but New Jersey Resources, the parent company of New Jersey Natural Gas, said PSEG's possible withdraw does not signal that the project is falling apart.

"New Jersey Resources is fully committed to PennEast," said company spokesman Michael Kinney. "... The project continues to move through the approval process. We look forward to receiving the final environmental impact statement from (the Federal Energy Regulatory Commission) and bringing the benefits of low cost natural gas to customers in New Jersey."

The 118-mile pipeline, which is expected to cost $1 billion, would extend from northeast Pennsylvania to western New Jersey and carry enough natural gas to service 4.7 million homes.

If approved, PennEast would transport natural gas harvested from the Marcellus Shale in Pennsylvania to customers in the Mid-Atlantic Region.

PSEG still plans to remain a customer of the pipeline, expecting to feed 125 million cubic feet of natural gas daily from PennEast into their system.

"We look forward to being a PennEast customer," said PSEG Power president Bill Levis in a news release. "We’ve decided to put our focus on our core business — constructing three new combined cycle power plants and running our diverse fleet of generation plants.”

Like nearly all transmission pipelines, the project has a polarizing effect, with supporters saying PennEast will supply cheap, relatively cleaner-burning gas to New Jersey consumers and opponents arguing that investments in fossil-fuel infrastructure are taking away money that should be going to clean energy projects.

NEWSLETTERS

Get the APP's Biz Blast newsletter delivered to your inbox

We're sorry, but something went wrong

Attention NJ business owners and professionals -- and anyone who just loves shopping at the Shore: Business reporter Mike Diamond and Press on Your Side's David P. Willis are your number one source for all things business and retail in New Jersey.?

“PSEG’s withdrawal from the project is significant and shows this project is in trouble," said from Tom Gilbert, campaign director, ReThink Energy NJ, in a statement. "PennEast would only benefit a few private energy companies, but consumers and our communities would bear the costs of the project. The pipeline is not in the best interests of New Jerseyans, nor is it consistent with the clean energy future they want according to polls of voters in the state."

PSEG had invested about $11 million in the project last year and was planning on spending a total of $100 million through 2020, according to public financial statements. Two other partners — Elizabethtown Gas and South Jersey Gas — remain involved.

Attention NJ business owners and professionals -- and anyone who just loves shopping at the Shore: Business reporter Mike Diamond and Press on Your Side's David P. Willis are your number one source for all things business and retail in New Jersey.?